Tuesday, November 29, 2011

[Yankee Group]: Policy Control Market to Reach $1.4B in 2015; Sees Sharp Price Decline

According to Jennifer Pigg (pictured), Affiliate, Yankee Group latest report "Drivers including fair use, enhanced use cases, network convergence, VoLTE and M2M will combine to finally push the network policy control market over the billion-dollar mark in 2014, and to $1.394B in 2015, representing a heady 31% CAGR from the 2010 market of $365M"

The report findings below (small market size, sharp price decline) as well as very large number of vendors (here)] led the Ms. Pigg to conclude that "Until now, stand-alone policy vendors  have dominated the market. Moving forward, it will be led by control plane and large system vendors". See recent product announcements from Oracle (here) and Amdocs (here), as well as the Telcordia acquisition by Ericsson (here).
  • "At $365 million for 2010, the policy and charging rules function (PCRF) market is tiny. However, with the role it plays in monetizing the network, the PCRF is the lynchpin for billions of dollars of mobile operator enhanced service revenues." 
  • "Pricing for PCRF has decreased from $4 per active session to around $1 per active session. Yankee Group expects a further decline of around 10 percent over the next 12 months and up to 25 percent over the next 36 months"
Comparison to other forecasts - here.

See "The Market for Network Policy Control" - here.

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